UK ad market forecast to ‘keep calm and carry on' through Brexit
The UK advertising market is expected to brush off Brexit-related tailwinds according to a summer forecast compiled by Magna headed ‘UK Ad Market Keeps Calm and Carries On’.
UK ad market forecast to ‘keep calm and carry’ on through Brexit
Among the reports, key findings are an anticipated slowdown in revenue growth from 6.7% in 2019 to 5.3% in 2020 in the world’s fourth-largest advertising market, with the UK remaining more dynamic than its Western European rivals in 2019 where growth is expected to be just 3.9%.
The British figures compare favourably with a global growth estimate of 5%, valuing the worldwide market at near $600bn, amid stronger than anticipated growth in the US and China. This represents a fall from the 8% global growth rate recorded in 2018 on the back of US elections and the Fifa World Cup.
Through 2019 UK digital ad sales are predicted to enjoy double-digit growth of 11% with linear ad sales falling back for the fourth straight year, retreating by -1.5%. TV meanwhile is expected to be flat while radio, print and OOH record growth of 2.5%, -10% and 4% respectively.
Vincent Létang, executive vice president of global market intelligence at Magna, said: “Global ad spend continues to grow as the economy remains strong in key markets but two factors are slowing down the growth rates in 2019: one is cyclical (the lack of major events in 2019, following a record year in 2018) while the other is structural: digital ad formats maturing (from 19% in 2018 to 14% this year) as they now account for more than half to total advertising sales.
However, product innovation (smart homes, cloud services, OTT, 5G) and marketing innovation (direct-to-consumer brands) will continue to drive ad spend growth this year and next.”
Around the world ad spend growth is expected to come in at 3% in the US, 10% in China and Russia and 15% in India.